The 30-share index was trading 133.27 points, or 0.37 per cent, lower at 36,107.73 at 0945 hrs. The index had closed with a marginal gain of 47 points at 36,241 Monday.

In similar movement, the NSE Nifty was trading 31.20 points, or 0.29 per cent, down at 10,852.55.

Investors turned cautious after the euphoria over US-China trade settled, and uncertainty over negotiations between the two countries during the next 90 days rose.

The White House announced after talks between President Donald Trump and Chinese counterpart Xi Jinping on Saturday that a tariff hike that had been due on January 1 would be suspended for three months while the two sides negotiate a resolution.

US President Donald Trump and his Chinese counterpart Xi Jinping agreed to a truce and halted their tariff war at the G20 meet.

Market is also in wait-and-watch mode ahead of the outcome of the Reserve Bank of India's fifth bimonthly monetary policy meeting for 2018-19.